Sierra Leone’s fiscal performance in April 2026 points to an increasing dependence on domestic borrowing to meet government financing needs, as external funding remained unavailable and debt servicing obligations continued to place pressure on public finances.
Details contained in the Statement of Fiscal Operations (Consolidated Fund), signed by Accountant General Richard S. Williams, show that net domestic borrowing rose to SLE 1.17 billion in April, more than doubling the SLE 565 million recorded in March.
Treasury bills remained the government’s primary financing instrument, contributing SLE 1.26 billion during the month and highlighting the growing role of short-term domestic debt in supporting government expenditure.
While the 2026 budget projected external borrowing of SLE 2.52 billion, no external loan disbursements were received during the first four months of the year. At the same time, the government continued to meet its debt obligations, making external debt amortization payments totaling SLE 180 million in April. This brought cumulative external debt repayments between January and April to SLE 798 million.
Domestic debt obligations also continued to impact fiscal operations. The government paid SLE 89 million toward long-term domestic debt in April, increasing total repayments in that category to SLE 229 million for the year so far.
Although borrowing levels increased significantly, overall financing conditions remained challenging. Net financing recorded in April stood at SLE 878 million; however, cumulative financing from January through April reflected a deficit of SLE 280 million.
The pressure on government finances was further evident in the movement of public sector bank balances. Government cash holdings declined by SLE 572 million during April and fell by a cumulative SLE 4.54 billion over the first four months of the year.
The latest figures underscore the government’s increasing reliance on the domestic debt market in the absence of external financing inflows. At the same time, rising debt servicing costs continue to constrain fiscal flexibility and reduce available resources for other government priorities.
Economic observers have cautioned that sustained dependence on treasury bills could expose the country to higher refinancing risks and increased borrowing costs, potentially placing additional strain on Sierra Leone’s already constrained fiscal position.